Each new payroll rule change costs US business up to $100,000
And the cost of compliance is rising annually.
Each new payroll or labour-related regulatory change at the federal, state and local level costs US companies between $40,000 and $100,000 to comply, according to research.
A survey conducted among 812 HR and payroll professionals by HR and workforce management software supplier Kronos’ Workforce Institute revealed that every time legislation relating to the minimum wage, paid time off or payroll cards among others is changed, employers are required to fork out for everything from legal help to new training for payroll teams.
To make matters worse, the research also found that the cost of compliance is rising, with more than two thirds of the professionals questioned indicating that expenditure in this area had increased over the last year alone.
A second study by payroll, HR and benefits outsourcing supplier Paychex also pointed to healthcare reform as being one of the top five issues affecting US payroll at the moment.
Ongoing uncertainty at the federal level over the future of the Affordable Care Act (ACA), otherwise known as ObamaCare, had resulted in state-level legislators attempting to either make the terms of ACA compliance more flexible or preserve elements of it in the event of it being repealed.
But this situation is having a knock-on effect in payroll compliance terms as it has an impact on how employers compensate employees and what healthcare benefits are provided, which is in turn adding to costs.